The Reserve Bank of India (RBI) has approved the merger deal between Kotak Mahindra Bank and ING Vysya Bank, creating the country’s fourth largest private sector lender. “The scheme will come into force with effect from April 1, 2015. All the branches of ING Vysya Bank will function as branches of Kotak Mahindra Bank with effect from April 1,” the RBI said in a statement. The top three private banks in the country are ICICI Bank, HDFC Bank and Axis Bank. Following the merger, all the tangible and intangible assets have been transferred to Kotak Mahindra Bank. The merged entity has now 1,214 branches, with a wide-spread pan-India network. ING Vysya had around 10,000 employees, while Kotak Bank has around 29,000 employees. The Rs 15,000 crore merger deal between Kotak Mahindra and ING Vysya got the Competition Commission’s approval in February. In an order dated February 12, the CCI said that share of both entities in various relevant markets is “insignificant”. In this case, the regulator took into account multiple relevant markets including those for deposits, home loans, agricultural banking and card business.
